Live from the Stanford Graduate School of Business
Dec 1, 2022
auto_awesome
Find out how Stanford GSB became the best business school. Mary Barra from GM reveals their EV plans. Nextdoor CEO talks about their social business strategy. Discusses the correlation between water use and greenhouse gas emissions. Highlights the importance of international students in business schools and immigration reform. Explores General Motors' outlook and EV sales goals. Nextdoor adapts to the current climate and supports local businesses. Reflects on Stanford experiences and the current market.
By optimizing water management, industrial facilities could reduce water consumption by up to 44%, trim energy use by up to 22%, and reduce corporate greenhouse gas emissions by up to 12%
Next Door, a neighborhood social network, provides a unique space for advertisers, especially small businesses, to connect with their local customers and is an attractive option due to its trustworthiness, authenticity, and potential for building customer relationships
Deep dives
Optimizing water use to combat climate change
According to environmental reporting non-profit CDP, global water use, storage, and distribution contribute to 10% of global greenhouse gas emissions. By optimizing water management, industrial facilities could reduce water consumption by up to 44%, trim energy use by up to 22%, and reduce corporate greenhouse gas emissions by up to 12%. Next Door, a neighborhood social network, focuses on local businesses by providing a platform for small businesses to connect with their communities. This model aims to help businesses reach customers at a time when privacy changes, economic downturns, and advertising slowdowns pose challenges to other social platforms. Small and medium-sized enterprises, or SMEs, are finding Next Door helpful in connecting with local customers amidst the changing landscape of advertising. Next Door emphasizes the importance of local businesses and providing opportunities to give back to the community. Walmart is one such company finding value in targeting local customers through Next Door's platform. Advertisers, both local businesses and larger national or global brands, are adjusting their marketing strategies and focusing on performance-based marketing to drive sales. While advertising spending is subject to economic fluctuations, with downturns typically resulting in reduced spending, advertising remains a crucial component of businesses' revenue generation. Next Door places a strong emphasis on supporting local businesses and cultivating a trusted community experience.
Navigating the challenges of ad-based social networks
Ad-based social networks such as Facebook and Snap have faced significant challenges, causing advertisers to reconsider their marketing strategies. The changes in privacy policies, particularly Apple's IDFA privacy changes, have impacted the ability of businesses to reach their target audience effectively. While larger companies have been affected, small and medium-sized businesses face even greater challenges in reaching their customers due to limited resources and budget constraints. Next Door, with its emphasis on local businesses and a community-focused platform, provides a unique space for advertisers, especially small businesses, to connect with their local customers. Next Door's value proposition lies in its ability to provide local businesses a free presence and the opportunity to interact with their customers directly. Advertisers, even on a national or global scale, are increasingly recognizing the importance of appealing to local communities and tailoring their marketing efforts accordingly. While ad spending may fluctuate during economic downturns, businesses understand the continuous need to drive revenue even in challenging times. Next Door's focus on local communities and its authentic network provide both businesses and customers a reliable platform for connecting and engaging with one another.
Sarah Fryer's perspective on the ad-based social platform model
Sarah Fryer, the CEO of Next Door and Stanford Graduate School of Business alumna, acknowledges the challenges faced by ad-based social platforms in the current market. With companies like meta and Snap seeing significant declines in their stock prices, the ad-based model has encountered hurdles. Advertisers have become cautious about their spending, focusing on what they can control during an uncertain economic climate. However, Fryer emphasizes the importance of maintaining advertising efforts, even during downturns, to continue driving revenue. Next Door's local focus allows it to offer unique advantages to advertisers, as it provides an avenue for connecting with local customers and communities. The platform's trustworthiness and authenticity, as well as its potential for building customer relationships, make it an attractive option for both local and national brands. Even with economic uncertainties, businesses recognize the need to adapt their strategies, aligning with the performance-focused marketing that Next Door can facilitate. By prioritizing local customers and supporting small businesses, Next Door has positioned itself as a valuable platform for advertisers, offering an alternative to the ad-based social network challenges faced by larger players in the industry.
Sarah Fryer discusses her time at Stanford and the business landscape
Sarah Fryer reflects on her time at Stanford Graduate School of Business during the dot-com bubble and draws parallels to the current market climate. She acknowledges that while both periods experienced significant market turbulence, they also presented opportunities for businesses to pivot and focus on fundamentals. Fryer advises businesses to adapt, find their unique selling points, and remain realistic about current conditions. As she teaches an IPO class at Stanford, Fryer uses examples from Square's IPO journey, highlighting the resilience and potential for growth during economic downturns. Drawing from her experience in finance during the 2008 financial crisis, she emphasizes the importance of managing businesses in a downturn and focusing on what can be controlled. Despite the challenges, Fryer believes that periods of economic uncertainty can foster the creation of great businesses, encouraging entrepreneurs to seize the opportunities available during downturns.
Stanford GSB Dean Jonathan Levin discusses Stanford taking the top spot in Businessweek's Best Business Schools ranking. GM Chair and CEO Mary Barra talks about her time at Stanford and the automaker's EV plans. Nextdoor CEO Sarah Friar talks about her experience at Stanford and the company's social business strategy for 2023. Hosts: Carol Massar and Tim Stenovec. Producer: Paul Brennan.